Zion Road residential site triggered for sale at a minimum bid price of $604.57 mil
The Zion Road (Parcel B) plot is a reservation spot on the 1H2024 Government Land Sales (GLS) program. Locations under the Reserve List are not issued for tender immediately however are initially offered for application. It will be put up for tender only when a builder submits an application with an appropriate minimum cost.
“Developers might likewise see the potential of the places at Zion Road, which there is sufficient interest for houses in the location, regardless of possible competition from the River Valley Green (Parcel A) site,” Lee claims.
In a similar way, Lee anticipates as much as 3 builders taking part in the tender for Zion Road (Parcel B), with the top offer for the place priced in between $1,100 and $1,200 psf ppr.
Nonetheless, Wong did not assume that the Zion Road (Parcel B) place would be activated so soon, because the recent tender grant of the Zion Street (Parcel A) site and a nearby housing plot in River Valley Green (Parcel A) that is still open. “This can show property developers’ assurance in the home buying interest in that location, given the site’s desirable area near two MRT stations and amenities such as the Great World City shopping mall,” Wong notes.
URA’s acknowledgment of this proposal cost is unsurprising, claims Wong Siew Ying, head of research and material at PropNex Realty, given that it is less than the winning bid for an adjacent Zion Road plot (Parcel A) that was allocated earlier this month to a joint project in between Singapore-listed property group City Developments and Japanese realty developer Mitsui Fudosan, The joint project handed in an one quote of $1.107 billion. The 99-year leasehold site is the initial to pilot long-stay serviced apartments with a minimal stay of 3 months, and can yield 1,170 residential units, including 435 continued serviced residences.
In this instance, the site was activated when the anonymous property developer had submitted a quote not lower than a minimal cost of $604.57 million.
Lee Sze Teck, senior director of data analytics at Huttons Asia, concurs that the triggering of the site may show programmers’ confidence in the site and in the real estate market, particularly for a pure domestic location than one that incorporates a long-stay serviced house element. “Marketing residence homes is extra simple and lugs lower dangers compared to undertaking a more recent endeavor,” he observes.
A confidential property developer has triggered the launch of a residential site, labelled Zion Road (Parcel B), which are going to be released offer for sale via public tender next month, according to an April 22 news release from URA.
Considered that the recent land tender end results at Zion Road (Parcel A) and Orchard Blvd have actually been “lacklustre” and awarded at “relatively conservative prices”, Wong opines that upcoming land bids can moderate. She anticipates the Zion Road (Parcel B) spot to obtain two or 3 quotes, and the top cost can be found in at around $1,150 to $1,250 psf ppr.
The 99-year leasehold spot inhabits 0.9 ha and is projected to yield as much as 610 exclusive non commercial units. With a highest allowable gross floor area (GFA) of about 559,744 sq ft, the application cost figures out to a land price of about $1,080 psf per plot ratio (ppr) based upon GFA. The site is nearby to Great World and Havelock MRT stops, Great World City, Zion Waterfront Food Centre and River Valley Primary School.
She includes that the property developer that set off the Reserve List site can also be seizing the possibility to make an application for the plot at an extra evaluated cost, in the middle of the careful market sentiment.
